Covid-19-hit 2020’s biggest luxury brand deals: Chanel bought Italian shoemaker Ballin; VF, the US owners of The North Face, acquired Supreme, and LVMH bagged a ‘bargain’ on Tiffany & Co.
LVMH chairman and chief executive, Bernard Arnault, flip-flopped on his previously agreed Tiffany & Co. deal earlier this year, eventually purchasing the company at a lower price. Photo: AFP
A ghastly year dominated by Covid-19 has been felt far and wide, especially by the fashion industry. In addition to the numerous luxury brands that have been forced to close, there has also been widespread consolidation of the industry through acquisition, with brands coming to the conclusion that they’re stronger together in a challenging market. From movers and shakers like LVMH’s Tiffany deal, to Alibaba and Richemont’s investment in Farfetch, here are some of the biggest luxury deals from the year.
LVMH acquired Tiffany & Co. for US$15.8 billion
Tiffany & Co.’s headquarters on 5th Avenue in Manhattan, New York City. Photo: AFP
The biggest deal of the year was in fact announced back at the end of 2019, but didn’t go through until October 2020. After striking the initial deal, the two sides fell out with each other and spent the following year arguing over, well, essentially everything, even suing each other after LVMH declared that Tiffany was no longer worth what it had bid. In the end, LVMH bought the storied New York jeweller for around US$425 million less than originally agreed.
Puig bought Dries Van Noten
Belgian designer Dries Van Noten at a fashion show in 2017. Photo: Reuters
A majority stake in ultra-chic Belgian label Dries Van Noten was bought in June for an undisclosed price by Spanish group Puig, which has a background in fragrance, but also owns brands including Jean Paul Gaultier, Carolina Herrera and Nina Ricci.
Ann Demeulemeester sold; Alibaba and Richemont took stakes in Farfetch
Meanwhile the fashion house of Ann Demeulemeester – coincidentally another member of the so-called Antwerp Six group of influential avant garde designers – was acquired by Antonioli in September, again for an undisclosed sum. The company is owned by retail entrepreneur Claudio Antonioli, the founder of fashion holding company New Guards Group, which controls Off-White and Palm Angels. New Guards was sold to luxury e-commerce retailer Farfetch for a total of US$675 million in 2019. Farfetch itself also received a US$1.15 billion mega-investment from Chinese tech giant Alibaba and Swiss luxury goods company Richemont in November.
VF purchased Supreme for US$2.1 billion
Ubiquitous New York streetwear label Supreme changed hands in November, bought by VF, the US-based owner of Vans, The North Face, Dickies and Timberland, for US$2.1 billion – not bad for a brand that has just 12 outlets globally.
The sellers were investment companies Goode Partners and The Carlyle Group, the latter of which bought its 50 per cent stake in the company for just US$500 million in 2017. Carlyle has also been selling, shifting high end shabby-chic trainer brand Golden Goose to fellow private equity firm Permira in February for around US$1.56 billion.
The headquarters of French luxury goods holding company Kering inside the former Laennec hospital in Paris, France. Photo: Reuters
Moncler acquired Stone Island for US$1.4 billion and Chanel bought Ballin
The luxury sportswear market consolidated in December when Stone Island was bought by Moncler, itself the rumoured target of a takeover by luxury goods group Kering late last year, which fell through in February. The Italian brand paid 1.15 billion euros for Stone Island (around US$1.4 billion), 70 per cent to the founding family and 30 per cent to Singapore’s Temasek investment firm.
In the world of footwear, in October Chanel bought Italian luxury shoemaker Ballin, which creates shoes both under its own label and for other luxury brands, including its new owner. In July, meanwhile, high end French shoemaker Clergerie was bought by private equity fund French Legacy Group from First Heritage Brands and Escada CEO Jean-Marc Loubier.
Exor bagged Shang Xia for almost US$98 million
Chinese designer Jiang Qionger of brand Shang Xia. Photo: Antony Dickson
Shang Xia, the Chinese brand owned by Hermès and designer Jiang Qionger, was purchased for 80 million euros (around US$98 million) in December by Exor, controlled by the Agnelli family, who own Fiat. And, finally, Frasers Group, formerly known as Sports Direct, is reported to be considering a takeover of leather accessories brand Mulberry, after upping its stake in the company to 37 per cent in November.
Covid-19 shook up the fashion world, prompting major companies like Alibaba and Richemont to invest in luxury e-commerce platform Farfetch and Moncler to buy designer sportswear brand Stone Island, among others
